Burberry, Richemont eye China luxury rebound

STORY: Some of Europe’s top luxury brands feel hopeful that Chinese consumers are ready to start spending again.

Britain’s Burberry said Wednesday (January 18) that it was seeing “very promising” signs of recovery in the country.

That as health crisis restrictions are lifted.

Burberry had suffered over the quarter to the end of December, when sales in mainland China dropped by almost a quarter.

Its shares jumped 4% following Wednesday’s more optimistic outlook.

There was a similar story over at Switzerland’s Richemont.

It’s the owner of numerous brands including Cartier jewellery.

The firm says it too expects a very strong rebound in Chinese demand.

A spokesperson said sales had recovered well ahead of the country’s lunar new year holidays.

Richemont shares were up over 1.5% by early afternoon.

The coming weeks will see more clues to demand with numbers from top luxury player LVMH and Gucci-owner Kering.

And the whole sector will be hoping for good news.

Consultancy Bain says spending on luxury goods by Chinese shoppers dived from about a third of the global market, to as little as 17% during the health crisis.